Return of Income & presumptive taxation scheme

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Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2010 Hi,

As per sec 44AA in case gross receipt/gross turnover exceed specified limit assesse is required to maintian mandatory books of accounts. however in case of presumptive taxation scheme for retailers if gross turnover does not exceed 40 lakhs in that case reatilers taxable income would be 5% of total turnover and no other books of accounts to be maintained.

Now while filing return of Income for above assessse whether figures related to balance sheet and profit & loss account need to be given in ROI or not? In ROI it is specifically given that figures needs to be given in case assesse is required to maintain books of account??

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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10 April 2010 In the return of income, i.e. ITR-4, there is is given that figures need to be given if books of accounts are required to be maintained. However, under the provisions of presumptive taxation, if the turnover is below threshold limit of Rs.40 Lakh and the profit as derived is as per the sections, then the assessee need not maintain books of accounts. In such case, as the assessee is not required to maintain books of accounts, the he/she need not give the figures in the ITR.

CMA.Palani Arumugam

CMA.Palani Arumugam (Expert)
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10 April 2010 Agreed.

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Querist : Anonymous

Querist : Anonymous (Querist)

10 April 2010 Seems contradiction in law as one section states to maintain books of accounts and other section states not to maintain books of accounts.

So in thid particular case need to ignore sec 44AA i.e. no need to maintain books of accounts? is there any case law or circular?

thanks!!